A month ago, Skyscape Capital Inc. (TSX-V: SKY.P) completed its initial public offering, raising gross proceeds of $500,000 by offering one million shares at 50 cents each. The Toronto-based capital pool company was incorporated in January and has no material operations or assets.
As disclosed in Skyscape’s final prospectus, the company was conducting due diligence to enter into the cryptocurrency industry via a non-binding letter of intent to acquire privately-held HyperBlock Technologies Corp.
HyperBlock is active in the industry in several ways, including selling new and used cryptocurrency mining hardware, selling hash rate to miners, providing server collocation services and mining cryptocurrencies itself.
In December, HyperBlock bought Sector 14 and Sector 22 in Montana, including 730 Antminer S9 servers for mining cryptocurrencies. Moreover, HyperBlock inked an agreement to acquire a 240,000 square-foot facility in Montano with a capacity of 20 megawatts for future expansion, positioning HyperBlock as a formidable player in the cryptomining space should all agreements and expansion come to fruition.
Cryptocurrencies were a sizzling hot industry throughout 2017, particularly due to the popularity and surge in value of Bitcoin, which catapulted from around $1,000 to near $20,000 at its peak in December before slipping back currently to $6,684 (as of about 9:30 a.m. EDT on Thursday).
Bitcoin "miners" are paid in Bitcoin for solving complex equations to validate transactions and add them to the Bitcoin blockchain, an immutable decentralized ledger.
Without providing an explanation as to why the decision was made, Skyscape said Thursday morning that a mutual decision was made with HyperBlock to terminate the LOI contemplating the acquisition. Skyscape said that it would remain on the prowl for its first acquisition.
Investors have not reacted to the news, with no shares traded shortly after the opening bell. Shares of SKY.P closed Wednesday at 61 cents.
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